Nearly three quarters (72%) of financial advisers have seen an increase in clients considering blended pension solutions following the Budget, according to research by LV.
The survey of advisers found that clients have started to opt for a combination of retirement income products, with many choosing products that provide guaranteed income and future flexibility.
Key findings:
- 88% of surveyed advisers have seen increased client demand for drawdown
- 80% reported interest in taking pension savings as a lump sum
- 51% said some clients weren’t aware of the tax implications of taking a lump sum
- 38% of advisers believe free, government-sponsored retirement guidance will increase business
- 35% don’t believe free guidance will impact on their business.
Philip Brown, head of retirement proposition at LV, said:
“Our research gives us insight into how those approaching retirement have responded to the Chancellor’s Budget. The changes are already having a dramatic impact on the retirement industry and we are likely to see further product innovation once all the reforms are implemented in April 2015.
“Those approaching retirement now have even more choice as to how to take their pension savings, but it is clear that there remains an air of confusion amongst clients as to what the changes mean. It is particularly interesting to see that clients are increasingly interested in mixing and matching products. Many retirees may not be aware that this is a possibility and this is one of the many areas in which advisers can truly demonstrate the value of at retirement advice.”
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